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Engie to sell its oil and gas unit to Neptune

Thursday, May 11, 2017


#Engie #Neptune #Private-EquityFund #Oil #Gas #Acquisition

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Neptune Oil & Gas made a firm $5,1 billion (€4,7 billion) commitment to purchase Engie’s 70% stake in Exploration & Production International (EPI). The binding offer includes nearly $1,2 billion (€1,1 billion) in decommissioning liabilities deconsolidated from Engie’s balance sheet.

EPI is headquartered in France and has upstream oil and gas interests in the UK, Norway, Germany, the Netherlands, Indonesia, Algeria and Egypt. Neptune, a London-based private-equity fund set up in 2015, is backed by private equity funds The Carlyle Group and CVC Capital Partners.

This transaction is in line with Engie’s plan to sell €15 billion worth of assets between 2016 and 2018 to shift away from oil and gas and to focus on contracted and regulated businesses such as energy services and grids. According to the company, the deal will have a positive net impact on its €2,4 billion debt.

The proposed transaction is subject to relevant consultation processes and customary regulatory approvals with completion expected by early 2018.

Links:

Les Echos

The Carlyle Group

Reuters

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